The San Francisco-Oakland-Hayward metro recently experienced a 7.4 percent year-over-year increase in existing home prices; however, things are still looking better for homebuyers when compared to single-family renters.
According to a market-by-market breakdown from Homes.com, the price of existing homes in the metro fluctuated by only 0.15 percent on a recent quarter-over-quarter basis.
With the market said to be 88.5 percent recovered, nation-leading, year-over-year price growth may be a thing of the past, especially as the metro enters the historically slow holiday season.
Growing inventory and slowing price growth in the San Francisco luxury market influenced Paragon Real Estate Group to recently dub the sector as having moved into “buyer’s market” territory.
Despite the overall median sales price for homes and condos reaching $1.2 million in October, renting a home in the city of San Francisco remains more financially difficult.
“The ongoing monthly cost of homeownership is roughly the same as it was in 2007,” Paragon stated in a recent report.
At the same time, the average monthly asking rents in the city has surged over 50 percent during the past four years. As of the third quarter the average residential asking rent in the city was $3,623. This has made rental property ownership an increasingly lucrative proposition for investors.
